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Solar for Business

Solar energy is power that is harnessed from the sun. This energy can be used as a heat source, called solar thermal, or as a power source, called solar electric. The sun's supply of energy can be converted directly or indirectly into useable forms of energy that can be used for many different commercial and industrial applications including heating water, space heating for buildings, drying agricultural products and generating electricity.

Solar Electric Applications

Solar electric, also referred to as photovoltaic or PV, is the sun's energy converted into electricity. Photovoltaic material, most often highly-purified silicon housed in PV arrays, converts sunlight directly into electricity. Photovoltaics are used in a wide range of products, from small consumer items, such as calculators and watches, to large commercial solar electric systems. Many commercial and industrial buildings are excellent candidates for solar electric due to their large, flat roofs that maintain an unobstructed supply of sunlight. Some examples of commercial and industrial PV applications follow:

  • Provide main or auxiliary power to buildings
  • Power communication equipment
  • Power highway construction signs
  • Pump water
  • Provide electricity to locations not served by the grid

System Pricing

Energy from the sun is free and the supply is unlimited. However, capturing and utilizing this free energy does have associated costs; specifically installing the equipment needed to harness the energy. In general, the cost for a commercial PV system is approximately $2.00 - $2.50 per watt of power for a large system and $3.00 per watt for a small system. Therefore, a large, 100kW system, would cost approximately $250,000 to install. Go here to learn more on system pricing. 

Builder / Developer Opportunities

Builders and developers around the nation are finding that energy-efficient and solar houses sell faster than conventional homes. Federal tax credits and improved technologies, such as new building-integrated solar technologies, make it an excellent time to pursue solar.

Tax Credits and Incentives

Although the initial investment may seem prohibitive, incentives in the form of tax credits and low-interest loans can help offset the costs. The Energy Policy Act of 2005 created tax deduction allowances of $0.60/ sq ft for commercial buildings with solar hot water systems and increased the business solar investment tax credit to 30 percent.

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